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Home My WebLink About2015-06-09 - AGENDA REPORTS - 2015-16 OPERATING BUDGET/CIP (2)0 Agenda Item: 9 CITY OF SANTA CLARITA 4) AGENDA REPORT PUBLIC HEARING CITY MANAGER APPROVAL: DATE: June 9, 2015 SUBJECT: FISCAL YEAR 2015-2016 ANNUAL OPERATING BUDGET AND CAPITAL IMPROVEMENT PROGRAM DEPARTMENT: City Manager's Office PRESENTER: Kenneth W. Striplin RECOMMENDED ACTION City Council and City Council acting as Successor Agency for the former Redevelopment Agency of the City of Santa Clarita conduct the public hearing on the proposed Fiscal Year 2015-2016 Annual Operating Budget and Capital Improvement Program, and schedule the budget for adoption at the June 23, 2015, City Council meeting. BACKGROUND The Fiscal Year 2015-2016 budget process is a six month effort that began in January. The Cit) Council Budget Subcommittee, which is comprised of Mayor McLean and Mayor Pro Tem Kellar, has been involved in the budget process and played a significant role in the development of the recommended budget. The proposed budget was presented to the City Council and all the Commissions during the Joint Budget Study Session on May 5, 2015. In addition, on June 2, 2015, the Planning Commission made a finding by minute action, that the Draft Fiscal Year 2015-2016 Capital Improvement Program is consistent with the City's General Plan. Total Appropriations The Fiscal Year 2015-2016 Budget totals $187.2 million. This includes funding for the Capital Improvement Program, the Redevelopment Successor Agency, operations and maintenance, personnel, and debt services. When compared to the current year's adopted budget, this represents a 2.24% decrease, equivalent to a $4.3 million reduction. Pa APPROVED Packet P9.4771 0 Projected Revenues A significant part of the budget process is estimating revenues for the upcoming fiscal year. This process is critical, as appropriations are based on these projections. Several factors are considered to ensure accuracy in our projections, including the state of the economy, historical trends, population projections/growth, and inflationary factors. With this information, the City can best determine the revenues available for allocation. Additionally, the City utilizes long- range financial planning to ensure long-term solvency. For Fiscal Year 2015-2016, total resources meet total expenditure appropriations, with the General Fund yielding a revenue surplus of $394,452. For certain one-time capital projects, fund balance is appropriated. General Fund Revenues The City's largest fund is the General Fund, representing $98 million of total revenues Sales Tax is the City's leading General Fund revenue source and is projected to total $34.8 million, which is a 4% increase when compared to the current year. General Fund Appropriations Fiscal Year 2015-2016 General Fund appropriations total $97.6 million. The total General Fund expenditures for Fiscal Year 2015-2016 include funding for operating departments; debt services, contingency, and transfers to other funds. Public Safety and Parks, Recreation and Community Services continue to maintain the largest General Fund budgets, with a Public Safety budget of $23 million. This demonstrates the City Council's commitment to protecting residents, businesses, and visitors from crime. The Parks, Recreation and Community Services budget will total $21.9 million for Fiscal Year 2015-2016. Providing high quality parks and recreational programs for our youth has always been a priority, and complements the organization's proactive approach to public safety by keeping kids busy and involved with positive activities. General Fund Operating Reserve Reserves are a critical component of the budget because this is a funding source that can be counted on in case of an emergency or unforeseen opportunity. The City has been very fortunate to be able to maintain a healthy reserve during slow economic times. At the request of the City Council, the operating reserve will increase from 18% to 19% of operating expenditures. For Fiscal Year 2015-2016, the City's operating reserve will total $15.8 million. Capital Improvement Program The Capital Improvement Program (CIP) is a key component of this document and is of vital importance to the community as a whole. The CIP represents a balanced approach for meeting the community's current and future capital improvement needs. The CIP accomplishes the Page 2 Packet Pg. 48 0 City's major goals for projects, while maintaining critical ongoing maintenance. Comprised of a variety of multi-year and multi -funded capital projects, the C1P for 2015-2016 totals $31.7 million. ALTERNATIVE ACTION Other action as determined by the City Council and the Redevelopment Successor Agency. FISCAL IMPACT The Fiscal Year 2015-2016 Budget totals $187.2 million, including $31.7 million for the Capital Improvement Program. The proposed budget is balanced. ATTACHMENTS Public Hearing Notice Draft 2015-2016 Operating Budget and Capital Improvement Program available in City Clerk's Reading File Page 3 Packet Pg. 49 CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING PUBLIC NOTICE IS HEREBY GIVEN: A Public Hearing will be held before the City Council of the City of Santa Clarita to consider the proposed budget for fiscal year 2015/2016 and the Proposed Capital Improvement Program in the City of Santa Clarita. The budget will be heard by the City Council in the City Hall Council Chambers, 23920 Valencia Blvd., 1st Floor, the 9th day of June, 2015, at or after 6:00 p.m. If you wish to challenge this order in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council, at, or prior to, the public hearing. Proponents, opponents, and any interested persons may appear and be heard on this matter at that time. Further information may be obtained by contacting Sarona Vivanco. Interim Assistant to the City Manager, (661) 284-1414, Santa Clarita City Hall, 23920 Valencia Blvd., Suite #300, Santa Clarita, CA. Dated: May 14, 2015 Kevin Tonoian City Clerk Publish Date: May 30, 2015 9.a Packet Pg. 50 J Q U y LL O N